2019 (1) TMI 1282

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....capital gains ass per Section 45(4) of the I.T. Act instead of short term capital gain as held by the AO? 2. The issue arises in following background. 3. The respondent assessee is a partnership firm. In the return of income filed for Assessment Year 2007+08, the assessee had offered certain receipts to tax as long term capital gain. The Assessing Officer, however, was of the opinion that the gain would give rise to short term capital gain. 4. The assessee had acquired a plot of land at Jogeshwari in the year 1960 for a consideration of Rs. 70,000/. During the period relevant to the Assessment Year 2006-07, the assessee entered into a development agreement on 28.11.2005 with one M/s K. Reheja Universal Pvt. Ltd. ("M/s. K. Raheja" f....

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....the treatment to tax offered by the assessee firm. However, in the present appeal, the Revenue has pressed only one such objection namely that the assessee was incorrectly treating the capital gain as long term instead of offering to short term capital gain tax. 7. The assessee carried the matter in appeal. The Commissioner of Income Tax [CIT(A)] allowed the assessee's appeal accepting the assessee's contention that there was no conversion of the land with FSI available thereon vide development agreement dated 28.11.2005. The CIT(A) held that the transfer by way of distribution on retirement of the partners was 50% of the assets of the firm. The same was, therefore, transfer of long term capital asset. 8. The Tribunal, in appe....